Chapter 9
Innovation And Organizational Change
Creativity - the generation of a novel
idea or unique approach to solving
problems or crafting opportunities.
Innovation - the process of creating
new ideas and putting them into
practice.
TYPES OF INNOVATION

BUSINESS INNOVATIONS
 Product Innovation
 Process Innovation
 Business Model Innovation

SUSTAINABLE INNOVATIONS
 Sustainable Innovation (Green Innovation)

SOCIAL BUSINESS INNOVATIONS
The Innovation Process
1.
2.
3.
4.
5.
Imagining
Designing
Experimenting
Assessing
Scaling
 Commercializing
innovation
◦ Process of turning new ideas into products or processes
that increase profits through sales or cost reductions.
Organizational Change
Change leader.
◦ A change agent who takes leadership
responsibility for changing the existing
pattern of behaviour of another person or
social system.
 Change
leadership.
◦ Forward-looking.
◦ Proactive.
◦ Embraces new ideas.
Models of Change Leadership
Top-Down Change – change initiatives
come from senior management
 Bottom-Up Change – change initiatives
come from all levels in the organization
 Integrated Change – Successful and
enduring change combines advantages of
top-down and bottom-up approaches.

Incremental and Transformational
Change
Reactive Change
 Performance Gap
 Planned Change
 Incremental Change
 Transformational change

Forces and Targets for Change
 External forces for change:
◦
◦
◦
◦
◦
◦
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Globalization.
Market competition.
Local economic conditions.
Government laws and regulations.
Technological developments.
Market trends.
Social forces and values.
 Internal forces for change:
◦ Arise when change in one part of the system creates the need
for change in another part of the system.
◦ May be in response to one or more external forces.
Forces and Targets for Change
Organizational targets for change:
◦ Tasks
◦ People
◦ Culture
◦ Technology
◦ Structure
Managing Planned Change
Phases of planned change
◦ Unfreezing
 The phase in which a situation is prepared for change
and felt needs for change are developed.
◦ Changing
 The phase in which something new takes place in the
system, and change is actually implemented.
◦ Refreezing
 The phase of stabilizing the change and creating the
conditions for its long-term continuity.
Change Strategies
Force-Coercion Strategies – change
through formal authority and/or the use
of rewards or punishments
 Rational Persuasion Strategies – change
through empirical data and rational
argument
 Shared Power Strategies – change by
participation in assessing change needs,
values and goals.

Reasons for people resisting
change
oFear of the unknown
oDisrupted habits
oLoss of confidence
oLoss of control
oPoor timing
oWork overload
oLoss of face
oLack of purpose
Dealing with Resistance to change
Check the benefits – what in it for me,
them, us
 Check the compatibility – keep change as
close to existing ways as possible
 Check the simplicity – easy to understand
and use, ease of access to information
 Check the ‘Tryability’ – allow people try
change little by little, no rush

Organization development (OD) - a
comprehensive approach to planned
organizational change that involves the
application of behavioral science in a
systematic and long-range effort to improve
organizational effectiveness.
 Organization development goals:
◦ Outcome goals focus on task accomplishments.
◦ Process goals focus on the way people work together.
◦ OD seeks to develop the organization members’
capacity for self-renewal.
◦ OD is committed to change through freedom of choice,
shared power, and self-reliance.
◦ OD takes advantage of knowledge about human
behaviour in organizations.
The organization development
process:
◦ Establish a working relationship.
◦ Diagnosis.
◦ Intervention.
◦ Evaluation.
◦ Achieve a terminal relationship.
Action Research
 Steps
in the action research process:
◦ Data gathering.
◦ Data analysis and feedback.
◦ Action planning.
◦ Action implementation.
◦ Evaluation and follow-up.
Organization Development
Interventions
Individual OD interventions
◦ Sensitivity training (T-groups)
◦ Management training
◦ Role negotiation
◦ Job redesign
◦ Career planning
 Team OD interventions
◦ Team building
◦ Process consultation
◦ Inter-group team building
 Organization-wide OD interventions
◦ Survey feedback
◦ Confrontation meeting
◦ Structural redesign
◦ Management by objectives (MBO)